*Off-street parking is available in the parking lot to the westand adjacent to 2020 L Street. Enter this lot from L Street or20th Street. Overflow parking is available in the parking lotacross the street from 2020 L on the UPPER LEVEL ONLY. Enterthis lot from 20th Street. The cost for all day parking in theselots is $2.00. After parking in either lot, see the SecurityOfficer in the lobby of 2020 L to make payment (exact changeplease).

The staff recommends that the Air Resources Board approve theproposed amendments to Section 1968.1, Title 13, California Codeof Regulations, which sets forth the malfunction and diagnosticsystem requirements known as On-Board Diagnostics II (OBD II). The amendments would give the Executive Officer authority tocertify 1994 and 1995 model year vehicles subject to the OBD IIrequirements in instances where one or more of the monitoringrequirements are not fully met.

DISCUSSION

A number of vehicle manufacturers, including Ford Motor Company(Ford), have chosen to equip specific vehicle models with OBD IIsystems for the 1994 model year. In discussions with Ford, ithas been determined that Ford's 1994 OBD II system design willnot meet the minimum requirements necessary for certification ofthe vehicles with respect to engine misfire detection anddetection of evaporative purge valve failure. Ford filed apetition with the Board requesting that a public hearing be heldto consider accepting OBD II system designs deficient withrespect to one or more of the requirements for the 1994 and 1995model years.

SUMMARY AND IMPACTS

The proposed action would affect some manufacturers certifying1994 and 1995 model year OBD II equipped vehicles. The amendmentproposed by the ARB staff would permit the Executive Officer tocertify OBD II systems deficient in meeting one or more of theminimum requirements on 1994 vehicles provided the monitoringrequirements were met to the extent possible, that the resultingmonitoring system is significantly more effective than previousOBD requirements (OBD I), and that a good-faith effort to meetthe minimum requirements in full was made by the manufacturer. For most 1995 model year vehicles required to meet the OBD IIrequirements, certification of deficient monitoring systems wouldalso be provided for, contingent on the manufacturer agreeing topay a fine per vehicle per monitoring system deficiency.

The proposed amendments are not expected to result in an overallincrease in vehicle emissions. Any potential emission increasesdue to OBD II system monitoring deficiencies should be more thanoffset by the requirement that, to be certified, such vehiclesmust be equipped with diagnostic systems significantly moreeffective than OBD II exempt vehicles, which need only to meetOBD I requirements. OBD II exempt vehicles are expected toconstitute the majority of new car sales during the model yearsaffected by the proposed action. Therefore, if certification ofvehicles equipped with OBD II systems deficient in meeting one ormore of the minimum requirements is not permitted, the void inthe marketplace would most likely be filled by vehicles with theless effective OBD I systems, most probably resulting inincreased emissions.

The staff also does not expect that the potential action willresult in any adverse economic impacts. Cost per vehicle shouldnot be affected by the proposed amendments, except with respectto the proposed fines for non-complying 1995 model year vehicles. Nevertheless, the impact of any such fines should be clearlyoutweighed by the cost savings the proposed action would createfor vehicle manufacturers, suppliers, distributors, andretailers, by allowing for the certification of 1995 model yearvehicles that otherwise could not be offered for sale inCalifornia.